LONG BEACH, Calif. -- April 18, 1996 -- Thirteen of
14 Option B cities and agencies have approved a proposed settlement
of the group's bankruptcy claims against Orange County and approval
by the final agency is expected Friday, making Option B support for
the settlement unanimous.
"This is a win-win for everyone -- the Bs, the As and the
county," said Patsy Marshall, mayor of Buena Park. "Our goal from
the beginning was to recover our rightful share of the bankruptcy
proceeds. I'm very pleased that we were able to reach a settlement
that benefits all those involved."
On Thursday, the Yorba Linda Water District became the 13th
agency to approve the settlement. The cities of Buena Park,
Claremont, Milpitas, Montebello, Mountain View, Santa Barbara and
Yorba Linda, the Buena Park, Montebello, Santa Barbara and Yorba
Linda redevelopment agencies, and the Santiago County Water District
all voted for the settlement on Monday or Tuesday.
The city of Atascadero is expected to approve the settlement Friday.
"We support the B group and the thrust of the agreement but
approved this in the hope that the county and its legal counsel will
live up to their end of the bargain," Mike Beverage, president of
the board of directors of the Yorba Linda Water District said
Thursday after the board's vote.
The proposed settlement provides for the Option B group to
receive $7.5 million in cash, $8 million in warrants to be paid over
10 years, and $9 million in secured claims paid from litigation
proceeds. The Option B group will be treated the same as Option A
cities and agencies in receiving other bankruptcy-related funds.
In exchange for the $24.5 million settlement from the county,
the Option B group will drop its lawsuit against the county and vote
for the county's Plan of Adjustment.
"There's a strong possibility we would have received more money
had we gone ahead with litigation," Marshall said. "But our major
concern was to reach an agreement and begin to put the bankruptcy
behind us."
The Option B group retains all its rights to sue Merrill Lynch
and other third parties involved in the bankruptcy, a critical
component in its members' decision to select the B option.
When Orange County declared bankruptcy on Dec. 6, 1994, the
Option B group had $187 million deposited in the county investment
pool, about 2.5 percent of pool funds. In the subsequent bankruptcy
settlement, which was approved by the federal bankruptcy judge and
the Orange County Board of Supervisors, all depositors ultimately
were offered Option A or B.
The cities and agencies which chose B were paid slightly less
but retained the right to pursue independent recovery efforts
against the county and third parties.
The B participants received an average of 77 percent of their
money but have been working to recover the rest -- at least $44
million.
"This settlement is a victory for the Bs," said John Gullixson,
mayor of Yorba Linda. "We continue to retain all our litigation
rights and we collect 100 percent of the damages we win on our own
in a court of law."
Diann Ring, a Claremont councilmember, said the Option B group
remains determined to recover as much as possible of taxpayer money.
"But I'm glad this battle is over," Ring said. "The fight with
Orange County has taken far too much time and effort. We all have
other priorities to address in our communities."
CONTACT: Adler Public Affairs, 310/435-5551
SALT LAKE CITY, April 18, 1996 - Bonneville Pacific
Corporation, through its Chapter 11 Bankruptcy Trustee (Roger G.
Segal), announces today that a settlement has been reached with
another defendant (of numerous remaining defendants) in the civil
action entitled Segal v. Portland General, et al. now pending in the
United States District Court for the District of Utah, Case No. 92-C-
364J.
The settlement is with Robert Pratt and provides for payment to
Bonneville Pacific Corporation of the total sum of six hundred
seventy- five thousand and no/100 dollars ($675,000.00). The
settlement is conditioned upon approval by the United States
Bankruptcy Court (the Honorable John H. Allen) and by the United
States District Court (the Honorable Bruce S. Jenkins).
CONTACT: Roger G. Segal, Chapter 11 Trustee for Bonneville
Pacific, 801-532-2666
WORCESTER, Mass., April 18, 1996 - href="chap11.cambridge.html">Cambridge Biotech
Corporation today announced that it is now trading on the
Over-the-
Counter (OTC) Bulletin Board under the symbol CBCXQ. Cambridge
Biotech had previously been trading unlisted under the symbol CBCXE.
The listing of CBCXQ on the OTC Bulletin Board is an important step
in establishing a more orderly market for the company's stock.
Cambridge Biotech Corporation, which filed for protection under
Chapter 11 of the United States Bankruptcy Code on July 7, 1994, and
which filed a plan of reorganization with the bankruptcy court on
April 10, 1996, is a therapeutics and diagnostics company focusing
on infectious diseases and cancer. The company is developing and
commercializing therapeutic and prophylactic vaccines for infectious
diseases and immunotherapeutics for cancer. The company's
therapeutics business includes the Stimulon(TM) family of adjuvants,
the most advanced of which, QS-21, is in clinical development
through corporate and academic partners, and proprietary vaccines.
The proprietary vaccines include a feline leukemia vaccine currently
on the market and vaccines in development in the areas of tick-borne
diseases, streptococcal infections, malaria, bovine mastitis and
canine Lyme disease. Cambridge Biotech's diagnostic business is
primarily focused on retroviral, Lyme and enteric diseases.
CONTACT: Alison Taunton-Rigby, President and Chief Executive
Officer of Cambridge Biotech Corporation, 508-797-5777, or Robert
Gottlieb, Senior Vice-President of Feinstein Partners, Inc.,
617-577-8110
ST. LOUIS, April 18, 1996 - Edison
Brothers Stores Inc.
(NYSE: EBS) reported a net loss for the fourth quarter 1995 of
$106.6 million, or $4.83 per share. Special after-tax charges of
$86.9 million were taken in the fourth quarter primarily related to
store closings. Of those charges, $52.2 million represented the
write-off of fixed assets and intangibles and other noncash charges,
$25.5 million were in connection with future lease termination
payments that are subject to settlement under bankruptcy
proceedings, and $9.2 million were primarily associated with
reorganization expenses. Without the special charges, the net loss
for the fourth quarter 1995 was $19.7 million. This compares with a
net profit of $3.2 million, excluding the after-tax benefit of $14.0
million resulting from the recovery of certain customs duties
previously paid, for the fourth quarter 1994.
Edison's liquidity has improved significantly since it filed for
voluntary reorganization under Chapter 11 on Nov. 3, 1995. The
company's cash balance increased to $139.6 million at the end of the
fourth quarter 1995 from $27.0 million at year-end 1994. In
addition, the company received a $37.6 million tax refund in
February 1996 and currently has approximately $155 million in cash.
The company generally does not expect to borrow under its $200
million debtor-in-possession (DIP) financing in order to finance
operations in 1996.
For the 53 weeks ended Feb. 3, 1996, the company reported a net
loss of $222.0 million, or $10.06 per share, compared with net
income of $20.5 million, or 93 cents per share, for the 52 weeks
ended Jan. 28, 1995. The net loss for 1995 included special after-
tax charges amounting to $158.1 million, including store closing
reserves, loss on the sale of the entertainment division,
accelerated amortization of the goodwill of Zeidler & Zeidler, and
reorganization expenses.
As previously reported, Edison's total sales for 1995 were $1.39
billion, down 5.9 percent from 1994 sales of $1.48 billion. Total
fourth quarter sales were $416.8 million in 1995, compared with
sales of $445.1 million in the fourth quarter 1994.
"We have successfully completed the short-term strategic
initiatives we announced in third quarter by closing approximately
500 unprofitable stores, selling the company's entertainment
division, closing the distribution center in Rome, Ga., and
significantly reducing Edison's store presence in Mexico," Edison
President Alan Miller said. "These actions have given us the
opportunity to pursue longer-range objectives that are needed to
improve the company's results. We have a long way to go before
Edison is restored as a leader in the specialty retail business, but
we are committed to making the changes necessary to succeed in the
highly competitive retail environment in which we do business
today."
Edison Brothers Stores Inc. operates approximately 2,000 apparel
and footwear stores under the names of JW/Jeans West, Coda, Oaktree,
J. Riggings, Zeidler & Zeidler and REPP Ltd menswear stores and
Phoenix men's big-and-tall catalog; 5-7-9 Shops junior apparel
stores; and Bakers/Leeds, Precis and Wild Pair footwear stores.
EDISON BROTHERS STORES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
14 Weeks 13 Weeks 53 Weeks 52 Weeks
Ended Ended Ended Ended
Feb. 3, Jan. 28, Feb. 3, Jan. 28,
1996 1995 1996 1995
(In millions, except per share data)
Net Sales $ 416.8 $ 445.1 $1,389.4 $1,476.4
Cost of goods sold,
occupancy and buying
expenses 323.8 320.8 1,033.3 1,017.4
Store operating and
administrative
expenses 93.0 97.2 352.1 360.3
Depreciation and
amortization 13.8 17.1 62.8 69.6
Interest expense,
net 2.4 5.0 25.2 19.0
Restructuring and
reorganization
expenses 97.8 167.1
Other operating (22.3) (22.3)
Total 530.8 417.8 1,640.5 1,444.0
Income (Loss) before
income taxes (114.0) 27.3 (251.1) 32.4
Income tax provision
(benefit) (7.4) 10.1 (29.1) 11.9
Net Income (Loss) $(106.6) $ 17.2 $ (222.0) $ 20.5
Per Common Share:
Net Income (Loss) $ (4.83) $ .78 $ (10.06) $ .93
Cash dividends
paid -- $ .31 $ .42 $ 1.24
Weighted average
common shares
outstanding
(in thousands) 22,087 22,022 22,070 22,007
LA CROSSE, Wis., April 18, 1996 - LaCrosse Footwear, Inc.
(Nasdaq-NNM: BOOT) today announced that it has entered into a letter
of intent with Red Ball, Inc., a
subsidiary of Norcross Footwear
Inc., Louisville, Ky., under which LaCrosse Footwear, Inc. will
purchase substantially all of the assets of Red Ball, Inc. for cash.
Consummation of the sale is subject to execution of a definitive
purchase agreement, which will contain customary closing conditions.
Red Ball, Inc. is currently operating under the protection of
Chapter 11 of the federal bankruptcy code and the proposed
transaction is subject to the approval and overbidding procedure of
the bankruptcy court. LaCrosse Footwear, Inc., and Red Ball, Inc.
are working on a definitive purchase agreement with a contemplated
closing date of mid-May 1996.
Red Ball, Inc. is a leading designer, manufacturer and marketer
of branded outdoor sporting and protective footwear, sold primarily
under the Red Ball(R) brand, used in hunting, fishing and other
outdoor activities. The Company's product offerings include hip
boots, rubber bottom/leather top pac boots and appropriate
accessories, totaling approximately $16.9 million in revenues in
1995. In addition, the Company has developed a line of children's
protective footwear, under the Red Ball Jets(R) brand with 1995
revenues of $5.8 million. Revenues in 1996 will be well below the
1995 level due to the temporary effects of the bankruptcy.
According to Patrick K. Gantert, LaCrosse Footwear, Inc.,
President and CEO, "The acquisition of Red Ball Inc. is an important
step in the continued growth of LaCrosse Footwear, Inc. The Red
Ball line of waders and hip boots will effectively complement the
existing LaCrosse(R) line and the Red Ball distribution goes beyond
the LaCrosse customer base by including a number of the leading mass
merchants. The distribution focus of the LaCrosse brand, however,
will continue on our existing base of independent retailers.
Further, the Red Ball Jets brand in children's protective footwear
is well established and should allow for the continued profitable
growth in children's products under both the LaCrosse and Red Ball
brands.
LaCrosse Footwear designs, manufacturers and markets premium
quality rubber, leather and vinyl footwear for the sporting and
outdoor, farm and general utility, occupational and children's
markets under the LaCrosse and Danner(R) brands and for private
label customers.
CONTACT: Robert J. Sullivan, Vice President-Finance of
LaCrosse Footwear, Inc., 608-782-3020